Orchestra BioMed, Terumo Sign $30 Million Strategic Agreements For Virtue SAB

(RTTNews) - Orchestra BioMed Holdings, Inc. (OBIO) said Tuesday it has signed a new right of first refusal (ROFR) agreement with Terumo Corporation and Terumo Medical Corporation that grants Terumo the right of first refusal to acquire rights or enter a new distribution arrangement for the Virtue Sirolimus AngioInfusion Balloon (SAB) for coronary artery disease, for an upfront payment of $10 million.

The agreement supersedes and terminates the prior Virtue SAB distribution deal between the companies.

In addition, Terumo will invest $20 million in Orchestra BioMed through a new series of non-voting preferred stock, convertible into common shares at a minimum of $12 per share, subject to certain conditions.

Under the ROFR agreement, Orchestra BioMed can seek development and commercialization partnerships for Virtue SAB across therapeutic indications, while Terumo retains the first right to review and respond to any third-party offers related to the global coronary market. The ROFR period will expire 90 days after Orchestra BioMed discloses primary endpoint data from the Virtue Trial to Terumo or the public, whichever comes first.

Terumo had previously made a $30 million non-refundable payment and a $5 million common stock investment under the earlier agreement.